There are Special Laws to protect properties mortgaged to Bank or Financial Institutes.
They are given harsh powers to attach and to auction such properties.
Civil courts have NO right to protect against such actions even if they be grossly illegal.
For this purpose, any aggrieved party has to approach to Tribunals set up under these laws only.
But a curious case happened.
After mortgaging property with bank, taking huge loan, after some years, the owner obtained permission letter from Bank to sell the property.
He sold the property to several buyers. Now several parties obtained rights in properties.
Later, after some years, Bank attached this property and also proceeded to auction it.
Various buyers filed suits in civil court for declaring their title, for injunction and also asking decorations that attachment by Bank Authorities was illegal.
The question arose :
Are these suits maintainable?
Who has jurisdiction to decide dispute when some disputes can be decided by only Tribunal and some disputes can be decided only by Civil Court?
Supreme Court held that so far as legality of Attachment Proceedings are concerned ONLY TRIBUNAL can decide.
But so far as other declarations are sought, parties can go to ONLY CIVIL COURT.
Thus prayers in the suits were split up.
And parties were given Liberty to reach appropriate forums.
Haresh Raichura
16/12/14
Copyright : Haresh Raichura 2014. All Rights reserved. C4/6/
